Customer Profile
The company is a multi-billion dollar transportation logistics company, with nearly 8,000 employees. The client had a large platform system for human resources, but it still did not provide all of the functionality that they needed.
Business Situation
The company had over 400 job titles. They were in need of a mechanism of valuing jobs across the company and to create an objective compensation framework while still integrating market compensation values. They needed a system that eliminated the guesswork in assigning base pay.
Solution
DBSquared, using the DBCompensation system, was able to streamline their job titles from over 400 to 280 to address the issues of position and pay creep. DBSquared was also able to simplify the pay structure for the entire organization into a single program with three pay lines.
Benefits
- Internally equitable and externally competitive pay program
- Proven methodology and compensation program
- Defensible compensation system for EEOC or OFCCP
- Automated system to increase efficiency
Customer Challenge and Solution
Using DBCompensation, DBSquared performed a pilot study for the company’s Intermodel Transportation Division, which accounted for 40% of the revenue generated by the company’s 50 job titles were processed by DBCompensation, objective salary ranges were created, and a market study was conducted to finalize the process and to make sure the new salaries were competitive.
Based on the pilot study, DBCompensation was chosen to put a consistent compensation management system into place for the entire company because of both the ease of use and undeniable benefits that the system provided.
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This program allowed the company their pay structure and create consistency across all the divisions so that employees could adapt their career paths to change divisions and locations without any internal or external inequity. All of the leadership had a better understanding of why it is absolutely necessary to objectively value jobs in order to create a fair and compliant compensation plan. By implementing DBCompensation, the client was able to streamline HR operation resulting in an estimated annual savings of $50,000 to $80,000 annually, not to mention savings from potential law suits for discriminatory pay.
“The DBCompensation process helped to take the guesswork out of comparing jobs similar in nature and has provided a consistent method to rate jobs internally while providing a good tool to ensure that pay rates stay competitive with the market.”
“DBCompensation hit a grand slam for us. The process was just what we needed to create better alignment both within the company and out in the market.”
